Hero MotoCorp rose 2.91% to Rs 1,808.95 at 9:19 IST on BSE after net profit fell 10.86% to Rs 548.58 crore on 1.25% decline in total income to Rs 6271.78 crore in Q1 June 2013 over Q1 June 2012.
The Q1 result was announced after trading hours on Wednesday, 24 July 2013.
Meanwhile, the S&P BSE Sensex was down 10.63 points or 0.05% at 20,080.05.
On BSE, 3,881 shares were traded in the counter as against average daily volume of 21,076 shares in the past two weeks.
The stock hit a high of Rs 1,817.50 and a low of Rs 1,767 so far during the day.
Hero MotoCorp said the net profit declined due to higher tax rate on account of the expiry of 5 years (April 2008-March 2013) of 100% exemption in Haridwar, where the largest-producing manufacturing plant of the company is located. With the expiry of the tax benefit, the tax liability of the company went up to 26.9% in Q1 June 2013, from 16.3% from Q1 June 2012. The decline in net profit is also reflective of the newly-levied higher surcharge in the Finance Bill 2013, Hero MotoCorp said in statement.
Commenting the first quarter results, Mr. Pawan Munjal, MD and CEO, Hero MotoCorp said: "The fact that our profit before tax has surpassed the previous as well as the corresponding quarter, despite a marginal de-growth in our volumes during the quarter and the overall economic downturn, is a strong statement of our intent and vision. Our operating profit has also improved compared to the previous and the corresponding quarter. We are determined to sustain the trajectory of positive momentum in the coming quarters as well. Q1 of this fiscal was an action-packed quarter for us when we rolled out a slew of innovative initiatives including the 'industry-first' five-year warranty on our entire range of products and our own dedicated retail financing arm. We continued to grow ahead of the industry in both scooters and 125cc motorcycles this quarter, thereby building further on our market share gain in these segments. We had a record month in May, with our highest ever dispatches in a month. Retails also kept pace with record 1.1 million-plus retail sales in April-May -- the highest-ever retails in a non-festival period. Heavy and early rains in June have slowed down the momentum a bit, but we are optimistic about growth in the second half of the fiscal. Our product launches that are planned around the festive season should contribute towards accelerating growth. On the new market front, after entering Central America and Africa, we are now geared-up for Latin American markets of Peru and Ecuador which should be in the month of August".
Hero MotoCorp is the world's largest two-wheeler manufacturer in terms of production capacity.
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